SPOKANE- Avista has filed a Purchased Gas Cost Adjustment (PGA) filing with the Idaho Public Utilities Commission (IPUC or Commission) that, if approved, will increase total natural gas sales by approximately $ 3.3 million, or 8.1%, effective Jan. February 2022. This filing will not affect Avista’s earnings.
The PGA is filed annually to offset the actual cost of wholesale natural gas purchased by Avista to supply customers with the amount currently included in customer tariffs. PGAs ensure that customers pay what Avista pays for natural gas, only at a more predictable and stable rate all year round. Avista filed its annual PGA filing earlier this year, and the new tariffs went into effect on September 1, 2021.
Since then, the wholesale price for natural gas has risen continuously. Because of this increase in wholesale natural gas prices, Avista is proposing a tariff adjustment that aligns the actual cost of what Avista currently pays for wholesale natural gas more closely to the natural gas costs included in the customer tariffs.
About 40% of an Avista natural gas customer’s bill is the combined cost of purchasing natural gas on the wholesale market and transporting it to the Avista system. These costs fluctuate up and down depending on market prices, which Avista has no influence on. It is important that Avista does not make a profit on the wholesale prices for natural gas or increase the wholesale costs; What Avista pays is passed on to customers dollar for dollar.
Invoices from natural gas customers
If approved, bills from residential natural gas customers in Idaho with a monthly average of 63 spas would increase $ 3.93, or about 7.6%, from $ 51.93 to $ 55.86 per month as of February 1, 2022 .
To help customers manage their energy bills, Avista provides services to customers such as housing, utilities, medical assistance and other needs. Avista also provides funding for energy support programs and Project Share, which are managed by community action agencies.
Avista offers energy efficiency and outreach programs that include discounts and incentives, as well as tips and resources to help customers manage their energy use and bills.
Price application process
Avista’s requests are proposals which are subject to public scrutiny and a decision by the Commission. Due to the COVID-19 pandemic, they cannot provide copies at the office locations as usual. However, a copy of the application is publicly available on the Commission’s website (www.puc.idaho.gov). Customers can submit written comments on Company filings to the Commission.
About Avista Corp.
Avista Corp. is an energy company engaged in the production, transmission and distribution of energy, as well as other energy-related businesses. Avista Utilities is the division that supplies 400,000 customers with electricity and 367,000 customers with natural gas. Its coverage area covers 30,000 square miles in east Washington, north Idaho, and parts of southern and eastern Oregon with a population of 1.6 million. Alaska Energy and Resources Company is a subsidiary of Avista which, through its subsidiary Alaska Electric Light and Power Company, provides retail electricity services in the city and district of Juneau, Alaska. The Avista share is traded under the ticker symbol “AVA”.
If you would like to comment on the proposed tariff change, you can do so by visiting the Commission’s website or by emailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074